Open a business, sell products online, print on demand?
Quick question:
I am a designer and illustrator and have been selling my designs on displate for a few months.
However, I haven't made much revenue yet, but that should change soon. I have absolutely no idea about taxes, starting a business, fees, etc. Can someone explain to me in as simple a way as possible, step by step? I'd appreciate professional help and advice.
Briefly about what I do:
I create designs and upload them to displate. I also sell them on Etsy as digital downloads.
For example, if I sell a record on displate for 44€ I get 10% and I don't have to worry about anything.
then I get
4€
minus taxes /fees minus discount on the website/discount codes
My profit is then about €2 net, which I can pay out. This can range from design discounts, etc., up to €10. I also have a share link; if someone purchases something through it, I even get 50% instead of 10%, for example, for advertising.
The 2€ will then certainly have to be taxed as profit.
I would be happy for a simple, if possible, instruction on how to proceed
(1 votes)
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And from me too:
You'd have had to register for the business.
You need to sign up a trade once a winner intention and you sustain the first day.
This is the case with you, and of course you must also tax the revenue.
And no, the amount of revenue plays in it at least no matter.
Click: When do you need to register a business?
Click: Commercial Code
Funded (!) commercial knowledge (aka about imprint obligation, right of withdrawal, competition law, product liability, liability for property/security, product safety law, GDPR, packaging regulation, taxes, insurance, health insurance etc.) For your part, such a project is a basic requirement; and for eBay, eBay classifieds and all other sales platforms and PayPal is of course also a basic requirement. Commercial account mandatory.
By the way:
A faulty imprint can make you up to €50,000.00 cost.
And yes, the number of zeros is completely correct:
Click: All about the imprint obligation
If you lack this knowledge – and after that it looks sadly at you – then you should first Foundation Seminar visit your IHK so that you can at least master the commercial foundations, otherwise you will fail mercilessly.
Click: Start-up Seminar
And I the competent authorities now have quite amazing possibilities…;-)
Click: Platform Control Transparency Act
Click: Digital platform operator reporting obligations (DPI/DAC7)
Click: When the tax office simulates online sales
In accordance with §138 AO and §14 GewO, you must register your commercial activity with the first one with the competent municipality and the tax office. For the latter, you must fill out a questionnaire for tax collection (FsE) and transmit it electronically,
The tax office will then check your inputs and assign a tax number to you. For “online trading” on Marketplace like eBay, you still need a USt ID to prove that you are taxed. Ebay and Co have also been obliged to report your sales to BZSt since 01.01.2023.
If you are expecting more than €2,000, the small business operator scheme according to §19 UStG is not eligible. If you’re not a small businessman, you’ll have to go on 10. Upon expiry of the pre-registration period, the sales tax pre-registration is issued to the tax office.
No matter how in the end, you will have to submit your income tax declaration annually and with Appendix EÜR, depending on the approach of the FA, also the VAT Declaration and USt Declaration.
If you do not register your business, this is an offence.
But not as a freelance artist.
The question is whether the conditions for freelance are fulfilled here, I would probably rather deny it
Because the 3 statements were simply completely wrong.
And it still has to pay and make a commercial tax return, which in turn is associated with costs.
A really strong “argument”.
If it comes at all over 24,500€, it can be calculated to reduce tax on the ESt up to a lifting rate of 400
What, of course, is total nonsense.
Well, I don’t think it should be that way.
What are the disadvantages of a freelance professional as an EU?
Especially since it will be pretty sure far below the weight FB
He sells self-designed designs. If this is not an artistic activity that is exercised freelance – what then?
He should then talk to the trade office but not simply register a trade with all the disadvantages that this entails in relation to a freelancer.
Sounds like you’ve had to log in.
You are best advised by the IHK in your area. There you will get all the information you need.
Since you are a freelance artist, there is nothing to consider. You do not need a trade registration, nor do you have to pay trade taxes and do not grant any forced membership in a chamber. In addition, as a freelance, you have the possibility to insure yourself via the Künstlersozialkasse.
At the end of the year, you specify on the tax return what expenses you had for colors, brushes, software etc. and how much money you got for your designs. You have to tax the difference as income.
That’s it.
Alex